Bitcoin trading strategy Entropy and Alligator
Entropy and Alligator trading strategy is trending and optimized for bitcoin cryptocurrency trading. The strategy is based on two indicators: Bill Williams' Alligator and Entropy, which shows the strength of the trend.
Input parameters
- Currency pairs: bitcoin / dollar
- Timeframe: H1 and older
- Bidding time: any
- Risk management: after calculating the stop-loss, choose this lot sizeto risk no more than 2-5% of the deposit per transaction
Setting up the price chart
- Unpack the archive
- Copy the template into the templates folder
- Copy the indicators to the folder MQL4 -> indicators
- Restarting the terminal
- Open the chart of the desired currency pair
- Install a template named Entropy and Alligator Trading System
The schedule should look like this:
Signals indicating the opening of a long position (buying)
- prerequisite: the price is above the Alligator indicator;
- The green line crossed the blue line from bottom to top;
- The red line crossed the blue line from bottom to top;
- The Entropy indicator line crossed the 0.001 level from bottom to top;
- Buy position is opened after the price rebounds from the green Alligator line.
Signals indicating the opening of a short position (sale)
- prerequisite: the price is below the Alligator indicator;
- The green line crossed the blue line from top to bottom;
- The red line crossed the blue line from top to bottom;
- The Entropy indicator line crossed the 0.001 level from top to bottom;
- Sell position is opened after the price rebounds from the green line of the Alligator indicator.
Setting stop/loss and take profit orders
Since the Entropy and Alligator bitcoin trading strategy is a trending strategy, the classic rules of setting stop-loss and take-profit orders apply to it:
- stop loss is set above/below the previous local maximum/minimum;
- Take Profit is set by the current trend or in the risk/profit ratio as 1 to 2.
Features of the Entropy and Alligator bitcoin trading strategy
Please note that the comfort of the Entropy and Alligator bitcoin trading strategy depends on the timeframe used. This is due to the large size of the spread set for BTC/USD. Accordingly, trading bitcoin on lower timeframes makes no sense.
In addition, the bitcoin/dollar pair chart may often form gaps, which should also be taken into account.
Before using Bitcoin trading strategies Entropy and Alligator on a real deposit, we recommend that you test it on a demo account.
Download Entropy and Alligator Strategy Template and Indicators